About The Author

Ben White is POLITICO Pro's chief economic correspondent and author of the “Morning Money” column covering the nexus of finance and public policy.

Prior to joining POLITICO in the fall of 2009, Mr. White served as a Wall Street reporter for the New York Times, where he shared a Society of Business Editors and Writers award for breaking news coverage of the financial crisis.

From 2005 to 2007, White was Wall Street correspondent and U.S. Banking Editor at the Financial Times.

White worked at the Washington Post for nine years before joining the FT. He served as national political researcher and research assistant to columnist David S. Broder and later as Wall Street correspondent.

White, a 1994 graduate of Kenyon College, has two sons and lives in New York City.

Trump and the Washington Post

TRUMP AND THE WASHINGTON POST
— If you can manage it, you should read the entire transcript of Donald Trump’s interview with the Washington Post editorial board. It is, as ever, mostly a discursive Trumpian world salad in which the GOP front-runner hardly ever answers a question with anything close to real substance. Here are a couple of our favorite moments. ..

Trump asked for specifics on his desire to “loosen up” libel laws: “I’d have to get my lawyers in to tell you, but I would loosen them up. I would loosen them up. If The Washington Post writes badly about me — and they do, they don’t write good. … I’m not looking for bad for our country. I’m a very rational person, I’m a very sane person. I’m not looking for bad.”

Story Continued Below

.

.

Trump on what he would do about urban decay and racial tension: “When you look at the Ferguson problems and the Baltimore problems and the Detroit problems. And you know there’s a lack of spirit. I actually think I’d be a great cheerleader — beyond other things, the other things that I’d do — I actually think I’d be a great cheerleader for the country.”

Trump on talking about his anatomy during a debate: “This was not me. This was Rubio that said, ‘He has small hands and you know what that means.’ Okay? So, he started it.”

Trump asked if he would use a nuclear weapon against ISIS:
“I don’t want to use, I don’t want to start the process of nuclear. Remember the one thing that everybody has said, I’m a counterpuncher. Rubio hit me. Bush hit me. When I said low energy, he’s a low-energy individual, he hit me first. I spent, by the way he spent 18 million dollars’ worth of negative ads on me.”

Post publisher Fred Ryan: “This is about ISIS. You would not use a tactical nuclear weapon against ISIS?”

Trump: “I’ll tell you one thing, this is a very good looking group of people here. Could I just go around so I know who the hell I’m talking to?” Full transcript:
http://wapo.st/1VxTCNV

WP edit page’s take on the meeting: “[H]is answers left little doubt how radical a risk the nation would be taking in entrusting the White House to him. There was, first, a breezy willingness to ignore facts and evidence. Are there racial disparities in law enforcement? ‘I’ve read where there are and I’ve read where there aren’t," Mr Trump said. … His answer to racial disparity and urban poverty is to create jobs. But how? … An empty policy basket makes almost impossible the kind of substantive debate on which democracies depend.”
http://wapo.st/22t7kXF

GOLDMAN CALLS IT FOR TRUMP (ALMOST)
— Per Goldman Sachs analysts: “The Republican nomination has not yet been clinched, though Donald Trump is the clear front-runner. While he needs to win around 65 percent of the remaining bound delegates to secure the majority needed for the nomination, this is within reach thanks to several upcoming winner-take-all contests and two other candidates splitting the remaining votes. … Trump is currently leading the race for the Republican nomination in nearly every state where recent polls exist.”

BREAK UP CITI?
— KBW’s Brian Kleinhanzl and Michael Brown: “Citigroup is in the midst of a multi-year restructuring; the company has shrunk meaningfully since the financial crisis. However, Citi’s valuation remains near the lows since the financial crisis and we believe that is a reflection of investor views about the ultimate return potential of the company post restructuring. We believe that Citi could be one of the only U.S. G-SIBs (global systemically important banks) that could successfully split up and this should unlock meaningful shareholder value — 50+ percent returns versus the current market capitalization. …

“We believe that the primary motivation for splitting up would be the faster return of excess capital to shareholders. … [W]e believe meaningful return of the excess capital will be difficult given the current and expected regulatory environment that Citi faces. We fully believe that regulators are more than comfortable having capital build at the largest banks, and adding G-SIB surcharges into the stress test process will be the next leg up in capital requirements.”

WARREN RIPS TRUMP … BUT SEES SIMILARITIES
— Boston Globe’s Annie Linskey: “The heightening spat between Senator Elizabeth Warren of Massachusetts and … Trump disguises the fact that the two sound a lot alike in one key area: banker-bashing. ‘Other than the hate, the xenophobia, and the downright ugliness, he talks about some important economic issues,’ said Warren of Trump in a brief interview with The Globe. ‘He came out last month and said hedge fund managers should be taxed at the same rates as everyone else. He’s right on that.” http://bit.ly/1S1t2XM

CLINTON ON THE “REVOLVING DOOR” WITH WALL STREET
— WP’s Karen Tumulty: “In August, under pressure from liberal groups, Clinton announced her support for legislation, authored by Sen. Tammy Baldwin (D-Wis.), that aims to slow what Warren has described as a ‘revolving door’ between Wall Street and Washington. The measure would prevent financial industry executives from receiving accelerated payouts of restricted stock options and other forms of lump-sum payment if they leave those jobs to take posts in the federal government.

“However, the legislation has little chance of passing before the next president takes office, and Clinton has not said whether she would impose a similar restriction on those she would recruit for high posts in her administration, if she is elected. ‘Hillary Clinton strongly supports Senator Baldwin’s legislation, and is willing to explore other steps that might help end the revolving door between government and financial institutions,’ Clinton spokesman Brian Fallon said Monday.”
http://wapo.st/1MjZ4St

SO MUCH FOR “LOSING” TO CHINA
— A pro-trade Dem emails: “I’m confused here. I keep hearing Donald Trump casually repeat that China is decisively kicking our ass at everything nonstop. But if that’s true. Why would they be begging the Fed for an anti-downturn manual … from 30 years ago?” He we referring to this Reuters piece: “Confronted with a plunge in its stock markets last year, China's central bank swiftly reached out to the U.S. Federal Reserve, asking it to share its playbook for dealing with Wall Street's ‘Black Monday’ crash of 1987.” http://reut.rs/1S248HH

DRIVING THE DAY
— Voters head to the polls in Arizona, Utah and Idaho (for Dems). Trump is likely to win Arizona but get crushed in Utah, emboldening the “stop Trump” movement. If Trump somehow drops Arizona, which is not impossible, that would be … yuuuge. … Hillary Clinton is likely to win Arizona but could lose Utah to Bernie Sanders, keeping the Dem race going … President Obama remains in Cuba will he will deliver remarks at the El Gran Teatro de Havana and then attend an MLB exhibition game between the Cuban national team and the Tampa Bay Rays … Obama heads to Argentina later in the day … Treasury Secretary Jack Lew testifies at 10:00 a.m. before House Financial Services on the state of the international financial system … House Financial Services housing subcommittee at 2 p.m. holds a hearing on government regulation of the housing market

THIS MORNING ON POLITICO PRO FINANCIAL SERVICES
— Patrick Temple-West on insurers’ plans to challenge the Obama administration’s fiduciary rule in court —and to get Morning Money every day before 6 a.m. — please contact Pro Services at
(703) 341-4600info@politicopro.com

FSOC READ OUT
— Via Treasury: “During the meeting, the Council discussed its ongoing assessment of potential risks to U.S. financial stability from asset management products and activities, including a discussion regarding potential financial stability risks related to liquidity and redemption risks and risks associated with the use of leverage by asset management vehicles. The Council also discussed certain factors that could mitigate such potential risks. The Council noted that it expects to provide a public update on its analysis this spring.”

MUST READ ON TRUMP’S ECONOMIC VIEWS
— Adam Davidson in NYT mag: “It’s easy to dismiss Trump as a loutish ignoramus who simply doesn’t understand how modern economies function. But I’ve come to see him as a canny spokesman for a different sort of economy, one that often goes by the technical name ‘rent seeking.’ … In recent weeks, hearing Trump talk, I’ve realized that his economic worldview is entirely coherent. It makes sense.

“He is not just a rent-seeker himself; his whole worldview is based on a rent-seeking vision of the economy, in which there’s a fixed amount of wealth that can only be redistributed, never grow. It is a world­view that makes perfect sense for the son of a New York real estate tycoon who grew up to be one, too”
http://nyti.ms/21E2Esf

FEDS COULD CRACK iPHONE ON THEIR OWN
— WSJ’s Daisuke Wakabayahsi: “A federal magistrate judge postponed a highly anticipated Tuesday hearing over the Justice Department’s request for Apple Inc. to help unlock a terrorist’s iPhone, after the government said it may have found another way to view the phone’s contents. In a filing with the U.S. District Court in Riverside, Calif., the government said an ‘outside party’ on Sunday demonstrated to the [FBI] a possible method for unlocking the phone of Syed Rizwan Farook, who, along with his wife, killed 14 people in a December attack in San Bernardino, Calif.

“The government said it must test the method, but that if it is successful, ‘it should eliminate the need for the assistance from Apple’ in unlocking Mr. Farook’s phone. The sudden move, less than 24 hours before the scheduled hearing, is the latest twist in the high-stakes legal battle between the Justice Department and the world’s most valuable company in a closely watched case over the balance between privacy and national security in the digital age.”
http://on.wsj.com/1LCHIjD

SEC TAKES ON COOPERMAN
— NYT’s Alexandra Stevenson and Matthew Goldstein: “The longtime Wall Street trader Leon G. Cooperman is preparing for a showdown with regulators. Mr. Cooperman and his $5.2 billion hedge fund Omega Advisors received a notice from the [SEC] on March 14 outlining the possibility that they could face enforcement action over trading violations, the hedge fund manager told investors on Monday.

“In a letter to investors, Mr. Cooperman said the trading involved a single security in July 2010 and a possible third party. Omega had been invested in the security since 2007, he said. Mr. Cooperman, 72, did not identify the stock in the letter, but later said that it was Atlas Pipeline. … The investigation into his firm may signal that regulators have not given up on pursuing improper trading cases against the nearly $3 trillion hedge fund industry despite an unfavorable federal appellate court ruling more than a year ago.”
http://nyti.ms/1UAprpz

OIL PLUNGE HITS BONDHOLDERS
— FT’s Eric Platt and Ed Crooks: “Investors have suffered losses of at least $150bn in the value of oil and gas company bonds, as the slump in crude prices since the summer of 2014 has fuelled fears of a wave of defaults in the US and emerging markets. The 300 largest global oil and gas companies have also seen $2.3tn sliced from their stock market value over the same period, a 39 per cent slide since oil began its decline …

“The losses show how intense the financial strain on oil producers from falling crude prices remains, in spite of the partial recovery in prices since January. Oil is still down about 65 per cent from its June 2014 peak. Banks have also been increasing their provisions for energy-related losses on their lending.”
http://on.ft.com/1RgVGV5

CUBA GOLD RUSH
— WP’s Nick Miroff: “Instead of blocking off the forces of American capitalism, the Obama administration now wants them to come flooding in — and leave it up to the Cuban government to cope with the consequences. On the afternoon of his first full day in Havana, Obama hosted a business summit at a beer brewery in the harbor, and it seemed to signal the beginning of a business comeback. He was heartily cheered by Cuban small-business owners, American executives and others who support his stated goal of ending the embargo, which would require congressional action. …

“As Obama spoke Monday, in front of a backdrop of huge Cuban and U.S. flags, the cruise line operator Carnival Corp. was reaching agreement on its own deal with the Cuban government under which some of its cruise ships will begin visiting the island starting in May. Western Union on Monday announced expanded service, as well. Obama said that Cisco Systems would partner with a Cuban university to develop an Internet technology academy and that General Electric is working on an aviation and energy deal.”
http://wapo.st/1o3izTA

PUERTO RICO HEADS TO SCOTUS
— Reuters: “Puerto Rico will ask the U.S. Supreme Court on Tuesday to validate a law that could let it cut billions of dollars from what it owes in debt at some public agencies, a key test in the island’s efforts to weather a massive fiscal crisis. The U.S. territory, facing what its governor has called an unpayable $70 billion debt and a 45 percent poverty rate, will argue its case against financial creditors, including Franklin Advisers and OppenheimerFunds, who want to keep contentious restructuring talks out of court.” http://reut.rs/1o3iOOG